Various investment vehicles exist which allow individuals to save for certain future expenses or life events while enjoying certain beneficial tax treatment. College savings plans, retirement plans, trusts and annuities are examples of such vehicles.
Regarding retirement plans, the present age is witnessing a shift in how investment plans are established, as many company pension (i.e., defined benefit) plans are being replaced with defined contribution plans (e.g., 401(k) plans, individual retirement accounts (IRAs), SEP IRAs). Further, many individuals today are operating under the assumption that they may never see their Social Security benefits. As a result, people are less certain about how much money they can count on in their later years, and it is possible and unfortunate that many retirees will outlive their retirement savings.
The financial planning industry promotes many products, systems, books and tapes that educate individuals on how to safely set aside funds for use and enjoyment during the retirement years. However, there are no systems or products in place for funding and administering a long term investment and/or retirement trust for young people in accordance with the present invention.